Correlation Between I3 Interactive and GameSquare Holdings
Can any of the company-specific risk be diversified away by investing in both I3 Interactive and GameSquare Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining I3 Interactive and GameSquare Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between i3 Interactive and GameSquare Holdings, you can compare the effects of market volatilities on I3 Interactive and GameSquare Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in I3 Interactive with a short position of GameSquare Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of I3 Interactive and GameSquare Holdings.
Diversification Opportunities for I3 Interactive and GameSquare Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BLITF and GameSquare is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding i3 Interactive and GameSquare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSquare Holdings and I3 Interactive is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on i3 Interactive are associated (or correlated) with GameSquare Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSquare Holdings has no effect on the direction of I3 Interactive i.e., I3 Interactive and GameSquare Holdings go up and down completely randomly.
Pair Corralation between I3 Interactive and GameSquare Holdings
Assuming the 90 days horizon i3 Interactive is expected to generate 5.47 times more return on investment than GameSquare Holdings. However, I3 Interactive is 5.47 times more volatile than GameSquare Holdings. It trades about 0.04 of its potential returns per unit of risk. GameSquare Holdings is currently generating about 0.01 per unit of risk. If you would invest 1.30 in i3 Interactive on August 27, 2024 and sell it today you would lose (1.29) from holding i3 Interactive or give up 99.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
i3 Interactive vs. GameSquare Holdings
Performance |
| Timeline |
| i3 Interactive |
| GameSquare Holdings |
I3 Interactive and GameSquare Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I3 Interactive and GameSquare Holdings
The main advantage of trading using opposite I3 Interactive and GameSquare Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I3 Interactive position performs unexpectedly, GameSquare Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GameSquare Holdings will offset losses from the drop in GameSquare Holdings' long position.| I3 Interactive vs. Grupo Simec SAB | I3 Interactive vs. Meiwu Technology Co | I3 Interactive vs. United States Steel | I3 Interactive vs. Reservoir Media |
| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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